Start the year with winning at In-App Advertising

In-app monetization is an increasingly effective way to unlock new revenue streams to supercharge your game’s growth. These strategies are not only player-friendly, but also an ample opportunity to earn more from your user base. 

 

IAA or IAP, or both?

 

Most apps are free to download which means they turn to two major revenue streams IAP and IAA. For some verticals of apps, particularly gaming, IAP alone is not enough to generate flowing revenue  (mostly in hypercasual and casual games). Despite the percentage of IAP users sitting at 5%, research shows that users who engage with IAA are more likely to become paying players.

We went into more detail on the great debate of IAA or IAP in this Monetization Report. Keep in mind that developing your game with a monetization model from the get-go will lend itself to easier integrations of in-app ads and getting closer to striking the balance of your game economy.

 

Get the most out of your ad spend

 

Not only was 2021 a record-breaking year of increased consumer ad spend and time spent on mobile devices. But consumers have become heavily reliant and attached to their mobile phones. Because of these deeply ingrained habits that formed during the pandemic, these everyday mobile activities are expected to accelerate – which is good news for both publishers and advertisers. 

 

 

Put your money where the action is

 

 

  1. People are spending more and more time in-app vs. mobile web or desktop. eMarketer estimates that by 2022 the average daily time spent on mobile will be more than 4 hours and 88% of that time spent in apps. 
  2. For brands, gamer demographics and motivations pull the curtain back on how to enter the space. Armed with that info, you can find the right ad formats and creative messages to reach them. In-app advertising has many advantages for brand marketers, especially in an environment where rewarded videos are welcomed by gamers.

Reach your audience

 

The gamer stereotype is fading away. Today, the gaming audience spans across all ages, is highly engaged, and is more likely to make purchases. Understanding your players will reveal the monetization opportunities you can grab and where potential gaps lie.

 

Let’s look at the numbers:

 

  1. 2.7 billion people play mobile games globally 
  2. 49% of US consumers are committed gamers meaning they play mobile gamers once to several times a day
  3. 142.9 billion apps and games were downloaded in 2020
  4. 64% of mobile gamers are female
  5. 92% of Gen Z and millennials play games, which makes it vital for brands to prioritize their gaming needs to secure the best return. 

 

Boost User Engagement

 

Monetization strategies that are tailored to your game, and integrated in the right places, with the right frequency, can improve user retention, increase app engagement and boost LTV.

 

In gaming apps, there are a number of ad formats you can use. For example, the most popularly used one rewarded video ads, gives users rewards in the form of in-app currency for watching ads. What makes this ad format effective is placing them at exact intervals when users require currency or a boost to continue playing. Blending the ad into the game loop creates a smooth and better user experience. Offer Wall is another exciting user-friendly ad format. Acting as an extension of the app economy, users can complete a variety of tasks and receive larger payouts of rewards depending on how much time they choose to invest in them. 

 

Segment your users

 

As a developer, your goal is to create a fun and engaging experience for users. Trying multiple formats and audiences can craft your winning strategy for what works best, but using your data to segment your app’s player base can further optimize your monetization strategy. 

 

User segmentation is the process of dividing your user base into cohorts based on a number of parameters, and then tailoring the most relevant experience to each one of them. There are a number of ways you can segment your users: paying players, engaged players, zero-value players, or by geos. 

 

For example, exploring new channels and platforms to succeed, such as the rising trend and power of influencer marketing and user-generated content. These channels are creating a steady and engaging resonance with niches and target audiences – converting into high-performing ads.

 

 

 If you want to design a successful influencer marketing campaign, it’s important to pick the right influencer and platform that will grab the attention of your target audience in a short amount of time. 

 

Innovate with new ad formats

 

Recently, Fyber and AdColony teamed up to survey a diverse range of gaming and non-gaming publishers across the world to collect their insights and delve into their monetization strategies.  

 

The report answered many of our burning questions around monetization strategies. We learned that despite the many methods available to earn in-app revenue, a high majority of respondents with non-gaming apps said that interstitial video ads is the format they are most looking forward to in 2022. Video ads generate significantly higher eCPMs and also offer a fair amount of flexibility. Playable ads and in-app purchases are in a close race for the title of “most exciting” ad format for publishers. 

 

 

Start the new year with a goal of innovating with the latest ad formats that get the most impact from your creatives and craft your campaign accordingly to fit the new formats. Don’t forget, each ad should be tailored to that mobile experience.

 

No matter what your ultimate revenue and UA goals are — whether it’s increasing your user base or growing in-app engagement — a carefully crafted strategy is critical. And, just remember – closely tracking the headway of your campaign, and making necessary adjustments (test, test, test) along the way is an essential part of the process.

 

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